Why We Need a Human Resources Audit?

ByVIVID Blog

Why We Need a Human Resources Audit?

Human Resources Audit or HR audit refers to complete evaluation of the current HR strategies and structures within an organization in the context of long term business goals of the firm. An HR audit is an integral part of a company’s personnel management. It validates the company’s compliance with legal rules and obligation necessary for its smooth running and conducting day to day affairs.

Need of Human Resources Audit

Human Resources AuditThough most companies and business organizations are well-versed with the need of HR Audit, yet they restrain from conducting such audit of their firm. The primary challenge before the owner is the HR audit’s extensive coverage, which required a lot of time and manpower.

It is for this very reason, many entrepreneurs and owners don’t give their nod for routine HR audit. But an independent HR audit by a professional can be easily conducted with limited money, resources and time frame.

Human Resource Audit: Need and Aims

  • It infuses a sense of professionalism among the HRD staff.
  • It reduces cost of Human Resource operation through more effective HR practices.
  • HR audit ensures that all company policies and programs are in lieu with the legal requirements necessary for that purpose.
  • Such audit finds critical HR problems and appropriate solutions to them.
  • It enhances positive image of the Human Resource Department.
  • The audit reviews the HRD performance and gauges the overall efficacy of the company’s policies.
  • It evaluates performance of staff using various tools such as Performance Appraisal Reports and others while putting forward appropriate recommendations for more improvement in their productivity.
  • HR audit helps to analyze factors which are detrimental to company’s health in the long run due to implementation and non-implementation of certain policies.
  • HR audit suggests corrective measures to identify mistakes and shortcomings if any relating to the company’s day to day activities.
  • HR audit lets the business firm analyze where it stands in front of its competitors.

HR Audit is Immensely Beneficial to Organization

A regular HR audit helps an organization in many ways. We already learnt many of them above but the major benefit that we derive from HR audit is its ability to act as a moral check on the company’s staff. In a way, it promotes healthier relationship between the staff and owners ultimately resulting in more success of the firm.

Read more about HR Audit Benefits.

No doubt, the success and longevity of any company ultimately depends upon the caliber of its staff. While most owners solely focus on reducing their cost of operation and enhancing profit, HR audit at the same time looks into the intricacies of how to keep the employer-employee relationship at optimum level for long-run triumph of the firm.

It is always advisable to go for an independent HR audit by a freelance HR professional. Internal HR audit is certainly not that much reliable and accurate. Also an independent HR audit report, signed by a reputed HR consultant acts a valid proof your company’s compliance with legal obligation as per the law of the land.

Drop us an Email at Info@vividservices.in or find more information from contact us Page to get your Human Resources Audit done!

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